Autoblog

The roundabout that was the Chrysler, LLC-Getrag partnership recently came to an end with Chrysler pulling out the deal, citing untenable financing terms. Now Getrag Transmission Manufacturing, the U.S. company that was going to build the dual-clutch transmissions for Chrysler, has filed for Chapter 11. Getrag has done so in order to streamline its handling of claims and creditors.

Of course, it's not over: Getrag is suing Chrysler for pulling out, Chrysler is suing Getrag for not getting the $300 million financing that Getrag was supposed to bring to the table. Other than the lawsuits and bad blood, all that's left are the partial remains of the factory that was to build the transmissions, and Chrysler's need to find a source of dual-clutch transmissions. Just another monument to the turmoil the auto industry is currently mired in.

[Source: Automotive News, sub req'd]

Chrysler has managed to stay out of the doom and gloom news for a few weeks now, which goes to show that going private can have its benefits. But things couldn't stay quiet forever, and as if the company needed something else to deal with, it's now in row with German transmission supplier Getrag over a potentially failed joint venture.

Chrysler uses Getrag double-clutch transmissions (DCT) in the Euro-version Dodge Journey (seen above), and is planning on adding the Euro Avenger and Sebring to the DCT lineup. Getrag signed an agreement with Chrysler to build a factory in the U.S. that would also supply Chrylser's American products with DCTs, and in return for Chrylser agreeing to get such transmissions only from Getrag, Getrag would get $300 million to finance and tool the factory.

According to Getrag, it only intended to borrow the funds if said funds were guaranteed by the German government. According to the German government, it would only guarantee the $300 million loan if Chrysler put that same amount in an escrow account to guarantee repayment. According to Chrysler, it had no idea of such an arrangement, and Getrag never should have signed the agreement if it meant Chrysler needed to back Getrag's loan with its own cash. And that's how court cases are made. While the factory remains in limbo, Chrysler needs to find another supplier for DCTs for its American cars, and do it in a hurry.

[Source: Automotive News, sub. req'd]

Construction of the $530 million dollar plant being built by Chrysler and Getrag in Kokomo, Indiana, has been suspended indefinitely due to a contract dispute between the two companies. Neither Chrysler nor Getrag were willing to specify the exact reason for the stoppage, the only word from Chrysler to Automotive News was that it hopes the dispute can be resolved so that the transmissions will be available in mid-2009. We hope so too, since the new dual-clutch transmissions are an integral part of Chrysler's powertrain revamp which includes the new Phoenix V6.

[Source: Automotive News – Sub. Req.]

Chrysler and Getrag are teaming up to build a transmission plant in Indiana, at a cost of around $530 million. The production center, set to open in 2009, will produce approximately 700,000 dual-clutch transmissions annually in Tipton, Indiana.

The new plant will employ about 1,000 Chrysler workers, all under the watchful eye of Getrag execs.

No details about the new gearbox, or its applications, were available, but with production expected to reach 700k a year, we'd expect the new DSG to populate the majority of Chrysler's offerings.

[Source: Reuters]

Michiyoshi Hagino, a Senior Managing Director at Honda Motor, sees profit margins inevitably falling as vehicles incorporate more and more advanced technologies to reduce emissions and increase fuel economy. More efficient gasoline engines, clean diesels and hybrid powertrains are all driving per-vehicle costs higher, while at the same time demanding massive, ongoing investment in research and development.

In a Reuters interview, Hagino predicts that automakers need to invest heavily in R&D today if they are to be competitive tomorrow, saying that automakers trying to preserve high margins today (by skimping on R&D) are risking decreased market share tomorrow. The breadth of the non-traditional development effort needed for tomorrow's powertrain products is demonstrated by Honda's ultracapacitor power unit (pictured), developed in-house for Honda's fuel cell vehicles.

High tech powertrains are also (at least today) more expensive to produce, with diesels and hybrids eating into profit margins even though they may command a higher sticker price. Even gasoline powered vehicles are seeing profit margins begin to drop overall, as small, cheap cars, like Honda's Fit, grow in popularity.

Automakers in the midst of costly restructuring efforts, or smaller companies without in-house resources, will be hard-pressed to mount massive powertrain development efforts. We're expecting a great deal more powertrain partnering to appear throughout the industry, and possibly an increased role for suppliers willing and able to make the investment in key powertrain subsystems, like the hybrid products announced last week by Bosch and Getrag.

[Source: Reuters]

The Bosch Group and the Getrag Group announced Tuesday that they will partner to develop and market parallel hybrid systems to provide a near-turnkey hybrid solution to automakers.

In a parallel hybrid solution, the electric motor is fitted directly into the power flow of the drivetrain. Under the terms of the partnership, Bosch will handle the electrical systems and power electronics, while Getrag will supply its dual-clutch transmission technology. The companies plan to jointly develop final-drive units with directly integrated electric motors. Bosch already has subsystems off the shelf for hybrid powertrains, and is well advanced in developing electric motors that can be directly integrated into a vehicle's powertrain (as shown in the cutaway model at right).

Once off the shelf hybrid systems are available, we can expect even small automakers to be able to offer hybrid models without prohibitively time-consuming and expensive product development. Bosch and Getrag estimate that their hybrid systems will allow automakers to realize fuel savings of up to 20 percent (using the European fuel economy test cycle) over gasoline-only drive systems.

The Getrag Group is the world's largest independent transmission manufacturer in the world, while Bosch is the world's largest auto parts supplier.

[Sources: Bosch, Getrag]